Drawing from Numbeo’s database, SHS Research highlights that Vietnam’s house price-to-income ratio is among the most daunting globally. By mid-2025, this ratio reached 27.3, meaning the average apartment costs over 27 times the annual household income.
In reality, adhering to the financial safety principle of allocating no more than one-third of income to housing, SHS Research estimates Vietnamese households would need to save for 80 years to afford a typical home. Analysts remark, “From youth to old age, owning a home remains a distant dream.”
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Heatmap of global house price-to-income ratios: Vietnam ranks among countries with the highest housing costs relative to income
(Price to Income Ratio) Source: Numbeo
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According to SHS Research, while household income grows by one step, housing prices leap three. In Hanoi, from 2014 to 2025, average income rose 6.4% annually, but apartment prices surged nearly 12% yearly, climbing from VND 25 million/m² to VND 75 million/m².
Analysts argue that soaring housing costs have become a structural economic issue. Rising living expenses further erode savings for homeownership. “Addressing this challenge requires policy intervention, not individual effort.”
Recently, property prices rebounded due to legal land clearance, lower interest rates, and expanded credit access. Does this necessitate immediate regulatory intervention to curb prices?
Is suppressing prices the solution?
SHS Research emphasizes viewing real estate within the broader financial asset landscape. Policies should not aim to “crush” asset values, as this defies market principles and risks systemic instability.
Instead, regulation should align housing price growth with income growth. SHS Research advocates for balance, ensuring affordability improves while safeguarding financial stability and avoiding market shocks.
Analysts note, “A nuanced policy preserves asset value for owners while enabling younger generations to enter the market, ensuring homes are shelters, not speculative tools.”
Short-term, SHS Research argues against forcing credit into production, as this sector lacks capacity to absorb funds. The focus should be on expanding the overall economy to strengthen production’s appeal to capital.
Meanwhile, interest-sensitive sectors like real estate and construction can lead recovery. Post-2008, the U.S. economy rebounded as housing revived, spurring construction investment and consumer confidence, with corporate investment following later.
“View real estate and production as a relay race, not a zero-sum game. With proper guidance, these sectors complement each other, driving sustainable growth,” SHS Research concludes.
Long-term, SHS Research advocates for strategic investment in social housing paired with transportation infrastructure. This approach moderates price growth, giving incomes time to catch up. Success lies in sustainable price increases, ensuring affordability for renters and first-time buyers while maintaining market stability.
Additional recommendations include tax tools, demographic-based urban planning, and improved market data for informed policymaking.
– 14:58 25/09/2025
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